Explaining The Results Archive

I was recently asked about the results of LS Trader which are found at http://www.lstrader.co.uk/results.php. Today I want to talk more about the results to make sure that everyone understands them clearly.

The results on the webpage assume a starting balance of £10,000 at the start of each year. The bet size is increased as a percentage of equity as the equity increases and no capital is taken out during the year. For example, if account has £10,000 and is trading a 4% risk per trade then the risk is £400 per trade, but once that account grows to £15,000, then 4% is £600 per trade. This continues until the end of the year. In an ideal world, the subscriber resumes the next year without withdrawing any capital and that is how a £10,000 account grows to £1 million in 6 years, by taking advantage of compounding with 150% annual returns.

The results on my own accounts are in excess of the results shown as I am trading a much larger account than £10,000 as can be seen by the screenshots on the home page. I have reduced this to a £10,000 starting balance as this is more realistic for most subscribers. I have statements from IG Index which show running profits in excess of £100,000 and account balances in excess of £200,000 but choose not to display that on the site as people don’t believe it and I don’t really want to flaunt that type of success publicly.

The larger losses are due to the fact that profits have been banked prior to a rollover and the loss has been taken on the contract after the rollover. Really, that is not a true summary as when a contract rolls over one needs to take the profit and loss from each contract in to account to get a true reflection. I always display things as they are as this is how someone would experience this on their own account.

Losses are always limited from starting capital due to strict money management rules, but it is possible to give back profits, especially after a rollover.

This should really explain the results section in a clear and concise way. If you do need further help on grasping the results section, you can contact me via the "support" button on the LS Trader website.

Kind Regards,

Robert Stewart